Fannie Mae gives transactors credit for good behavior Use of data opens door for applicants who look unqualified yet show responsible management
Are you a transactor or a revolver when it comes to your credit? Terms like these never have mattered much to home buyers seeking a mortgage. You ve probably never heard of them. Yet they are about to become more important to millions of mortgage seekers, and could even help determine whether you qualify for a mortgage in the first place.
A transactor is someone who pays off credit bills in full every month or makes more than the minimum required payment. A revolver is the opposite: Someone who routinely makes the minimum payment on credit cards and other debts, rolling balances over to the next month.
Credit industry statistical research suggests that, all other factors being equal, revolvers tend to present higher risks of future default to lenders, 上海千花网交友 especially when they are accumulating substantial unpaid balances. Transactors tend to be lower risk.
But up until now, mortgage lenders and investors had difficulty distinguishing revolvers from transactors. Credit reports told them whether you as an applicant were late on card payments, whether you defaulted on your car loan, but didn t tell them what you paid on your balances month by month over extended periods of time. They didn t reach back to show distinctive patterns and trends in your money management: Did you roll large monthly balances on three credit cards during the las[……]